It took Nintendo years to reach Wii production levels that could satiate the public, and now that they have, Nintendo needs to scale back production, hard.

According to a report on Nikkei, Nintendo partner manufacturers Mitsumi and Hosiden have suffered a drop in net profits of more than 50% due to waning demand. So steps are being taken to scale back Wii production appropriately.

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But you have to wonder, after Nintendo went through multiple holiday seasons without enough Wiis on store shelves, did such hype solely help the system, or did Nintendo eventually lose sales that they'd never get back? [Nikkei via Kotaku]